Wausau Friday Facts 6/7

Is It Too Soon to Talk about the Next Referendum to Increase Taxes?

Surprisingly, No. The groundwork is already being laid for next “fiscal crisis.” The 2026 budget puts the city’s Motor Pool Fund on the road to bankruptcy. From there, it is not hard to imagine seeing first responders being sent throughout the city to beg for a tax increase to replace outdated police cruisers and ambulances.

In what appears to be an intentional disregard of the Government Finance Officers Association (GFOA) Best Practices, the city uses its Motor Pool Fund to subsidize departmental budgets and then issues bonds and defers replacements to cover the deficits in the Motor Pool Fund. Here is how it is explained in the current city budget on page 217:

As an internal service fund, the objective [of the Motor Pool Fund] is to [accurately and fairly] allocate the costs of fleet operations to the departments utilizing fleet and fleet operations. [In 2020,] the city retained the Mercury Associates to examine the city’s operations. Among their key recommendations was to increase rates to recover the costs and to replace the fleet on a timely basis. Obsolete fleet generates downtime, is more expensive to maintain, and consumes more fuel. In addition, they noted that the resale value the fleet declines rapidly over time.

[Also, city] staff reviewed our billing structure and determined that the fees did not recover costs nor allocate costs equitably. More expensive equipment, such as large street and fire apparatus[es], along with police squads, were being [paid] undercharged, and pick-ups and other vehicles were being overcharged.

While the [proposed] new rates would recover costs and allow for [the] timely fleet replacement, they drove costs within the departmental budgets beyond the limitations of state guidelines for levy limit and expenditure restraint. Due to the state constraints, the 2026 budget anticipates [issuing] $2,000,000 of [new] debt financing for fleet replacement. The [city] budget also deferred the replacement of an aerial truck and [an] ambulance.

Five years later, the consultants’ recommendations have not been addressed, and the division is still losing money. The Motor Pool Division requested $9.3 million in internal transfers to fully fund the actual costs of vehicles and equipment in 2026, but it did not get it.

What did city hall do? It used the budget to limit the chargebacks to departments to only $4.9 million, about half of the fleet’s actual cost. Then, to cover the remaining half, the city will issue five-year notes (i.e., borrowing) for $2.15 million and defer the replacement of several vehicles.

Clearly, this is unsustainable. It is like the maneuver to hire permanent employees using one-time grant money. It sets in motion a fiscal crisis. So, do not be surprised if the next referendum is framed as a necessary tax increase to buy vehicles for police and firefighters.

Lean more about this issue:

Wausau Transit Commission Tackles Fleet Needs, Summer School Transit, and Staffing Hurdles. Natasha Winkler for WausauTimes.com: May 1, 2025.

Wausau’s municipal fleet facing crisis: Report cites aging vehicles, severe staffing shortage. Shereen Siewert for Wausau Pilot and Review: October 7, 2025.

Years of fleet fund raids deepen Wausau’s budget woes, fueling talk of public safety referendum. Shereen Siewert for Wausau Pilot and Review: October 26, 2025.

Wausau City Council must take action on motor pool woes. Keene Winters. Wausau Pilot and Review: November 2, 2025.